In 2016, employers will see a number of key Employment Law changes. Here is a summary of those agreed so far, to help you prepare for how they might affect your business.
Redress for workers punished for breaching exclusivity clause – Regulations came into force on 11 January 2016 to enable workers who suffer a detriment, or are dismissed as a result of breaching an exclusivity clause in a zero hours contract, to make a complaint to an employment tribunal.
Gender pay reporting details revealed – Regulations must be introduced by 26 March 2016 that will require employers with 250 or more employees to publish information about their gender pay gaps.
National living wage introduced – A new compulsory national living wage, which works as the top rate of the national minimum wage, will be introduced on 1 April 2016 for workers aged 25 and over.
Duty to prepare modern slavery statement takes effect – The duty to prepare a slavery and human trafficking statement (which has been in force since 29 October 2015) will apply in relation to financial years ending on or after 31 March 2016, for companies with a turnover of at least £36 million per year. This will begin to take effect for employers from 1 April 2016, depending on the timing of their financial year.
Penalty for failure to pay national minimum wage doubled – Draft Regulations double the penalty for non-payment of the national minimum wage and the national living wage for pay reference periods starting on or after 1 April 2016.
Statutory pay changes – The maximum amount of a week’s pay for the purposes of calculating statutory redundancy pay, and other awards such as the basic award for unfair dismissal, is likely to increase on 6 April 2016. The weekly rates of statutory sick pay, maternity pay, paternity pay, adoption pay and shared parental pay will not increase for 2016/17.
National minimum wage – This may rise on 1 October 2016, subject to the prevailing economic conditions and the Low Pay Commission’s report, which is due to be delivered to the Government in February 2016.
There are many other changes that are yet to be confirmed, including the Trade Union Bill coming into force, a cap on public-sector exit payments being introduced and new rules on apprenticeships. We’ll bring you news of all these and other changes as they are confirmed. If you have any questions about these changes and how they affect your employees and your business, do get in touch by calling 0118 940 3032 or by clicking here to email us. We will be running our next Employment Law Update workshop on 12 April 2016. Click here for details and online booking.